LONDON: Raw sugar futures rose on Wednesday, propelled off the prior session's 2-1/2 month low by a stronger Brazilian currency and more upbeat energy markets, while London cocoa set a six-week high and coffee also climbed.
SUGAR
* March raw sugar was up 0.27 cent, or 2.2 percent, at 12.57 cents per lb by 1459 GMT.
* Prices hit a 2-1/2 month low of 12.26 cents in the prior session, dragged down by a slump in crude oil.
* The market was supported on Wednesday by speculative buying inspired by more upbeat energy prices.
* "The oil/sugar correlation is being closely watched as gasoline prices have a material influence in Brazil's ethanol/ sugar mix," said Nick Penney, senior trader at Sucden Financial.
* Weaker energy prices reduce the competitiveness of ethanol, bolstering worries that Brazil's mills may switch more of their production back to sugar from the biofuel.
* Sugar prices were also boosted by a strengthening in the Brazilian real on Wednesday. A firmer currency in the top grower discourages producer selling by reducing local returns on dollar-traded goods such as sugar and coffee.
* March white sugar climbed $5.90, or 1.8 percent, to $341.90 a tonne.
COCOA
* March London cocoa rose 12 pounds, or 0.7 percent, to 1,697 pounds a tonne, after earlier rising to 1,700 pounds, its highest since Nov. 7.
* Dealers said prices were boosted by an improved technical structure after the market rallied on speculative buying in the prior session.
* They also noted speculators were testing chart resistance.
* While a surge in port arrivals in top grower Ivory Coast has signalled a strong start to the crop, dealers said they expected supplies to start tapering off.
* March New York cocoa rose $22, or 1 percent, to $2,293 a tonne.
COFFEE
* March arabica coffee rose 1.30 cents, or 1.3 percent, to $1.0070 cents per lb, also boosted by Brazil's currency.
* Prices hit a three-month low of 99.20 cents in the prior session, weighed down by plentiful global supplies following this year's record crop in top grower Brazil.
* March robusta coffee was up $15, or 1 percent, at$1,502 a tonne.
* Last week, prices hit $1,468, a contract low for March and the weakest for the second position since Sept. 4.
* Prices have been under pressure as Vietnam, the world's largest producer of the variety, is in the midst of harvesting a massive crop.
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